President Donald Trump has ordered an increase in tariffs on Canadian steel and aluminum imports by an additional 25%. This decision raises the total duties on these imports to 50%, effective Wednesday morning. The move comes in response to Ontario's government imposing a 25% tax on electricity exports to the United States, which Trump described as an "unprovoked attack."
The tariffs are part of a broader strategy by Trump to retaliate against what he sees as unfair trade practices by Canada. He threatened to further escalate the trade tensions by imposing significant tariffs on auto imports from Canada if other "egregious, long time Tariffs" are not lifted by April 2.
"Based on Ontario, Canada, placing a 25% Tariff on 'Electricity' coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD," Trump stated.
The financial markets reacted negatively to Trump's announcement. The Dow Jones Industrial Average plummeted over 400 points, while the S&P 500 and the Nasdaq Composite dropped by 0.6% and 0.1%, respectively. This volatility reflects growing concerns about a potential recession fueled by escalating trade conflicts.
Trump also demanded that Canada remove an "Anti-American Farmer Tariff" on certain U.S. dairy products. He warned of declaring a National Emergency on Electricity, claiming it could "essentially, permanently shut down the automobile manufacturing business in Canada."
Ontario's Premier Doug Ford responded firmly to Trump's actions, emphasizing that Ontario would remain steadfast.
"We will not back down. We will be relentless," Ford declared.
He also expressed regret over the situation, stating,
"I apologize to the American people that President Trump decided to have an unprovoked attack on our country, on families, on jobs, and it's unacceptable."
Trump's administration has promoted tariffs as a versatile economic tool, with April 2 marked as a key date for imposing "reciprocal tariffs" on countries that have their own duties on U.S. goods. Adding to the provocative rhetoric, Trump suggested on Truth Social his desire for Canada to join the U.S. as the "Fifty First State."